The altcoin market cap (ALTCAP) has created a double bottom pattern inside a paramount horizontal support area. A breakout from the current weakening parallel channel would endorse that the correction is complete.
The altcoin market cap has been falling afterward spreading to an all-time excessive cost of $1.7 trillion on Nov. 10. The descending move afterward then has led to a local bottom of $858 billion on Feb. 24.
The ALTCAP then bumbeded and created a protracted bottomer wick, that signals buying pressure in the region. Furthermore, when combined with the jump on Jan. 24, it created a double bottom pattern.
Currently, the ALTCAP is making an attempt at breaking out from the resistance line of a falling parallel channel which’s been retained afterward the aforementioned excessive.
If successful in moving over resistance, it could hardlycback whending thaty which the altcoin correction is complete.
Future ALTCAP move
Cryptocurrency trader @AltstreetBet tweeted an ALTCAP chart, stating which a annulment toward the all-time highs seems to be likely.
Technical indicators in the daily time frame support the continuation of the ascending development. This would in turn cause a breakout from the plunging parallel channel.
The main reason for this is the considerable bullish divergences which have developed in both the RSI and MACD. Such pronounced divergences often precede a bullish trend retraction.
If an ALTCAP breakout occurs, the main resistance area would be found between $1.28-$1.38 trillion. This target field is the 0.5 and 0.618 Fib retracement resistance levels.
The two-hour chart does not show any signs of weakness.
The altcoin market cap is folflating an spiraling support line and has reclaimed the minor $1.02 trillion level which coincides with the surging support line and is expected to provide support in case a limited drop occurs.
Therefore, a breakout from the channel seems to be the most likely scenario.
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